India has turned a net exporter of steel to China in April-August period for the first time in several years, due to sluggish demand from domestic market caused by COVID-19 pandemic, according to Crisil, a global rating agency said.

Through April to August, 69% of semi-finished steel and 28% of finished steel were shipped to China. India's 60%-80% steel production this year was exported, with China taking the lead.

Crude steel production dropped 27% year on year between April and August while Indian steel products demand plunged 38%, Crisil said.

Export-oriented primary steel producers witness its fall in production stand at 20%, far less than 40% reduction in the secondary steel segment.

"However, India's domestic steel products demand jumped 400% year on year in June, then slid, due to the lift of lockdown measures and economic recovery," the agency said.

China's finished steel import volume in recent months surpassed 90% of iron ore demand with soaring iron ore prices.

"While global steel prices were on a slide from end-February till June, iron ore prices soared, led by supply-side disruptions especially in Brazil and Australia. This prompted port-based capacities in China to import semis and process them further in order to save on increased iron ore costs," the agency said.

(Writing by Rebecca Liu  Editing by Harry Huo)
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